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2019 (6) TMI 1590 - AT - Income TaxAssessment u/s 153A - Bogus purchases - HELD THAT:- In the absence of any incriminating materials found during the course of search and seizure operations, no addition can be made u/s.153A of the Act. Reliance can be placed on the decision of Hon’ble Delhi High Court in the case of PCIT vs. Meeta Gutgutia [2017 (5) TMI 1224 - DELHI HIGH COURT] affirmed by the Hon’ble Supreme Court by dismissal of the Special Leave petition in the case of PCIT vs. Meeta Gutputia, [2018 (7) TMI 569 - SC ORDER]. There is a long line of authorities in support of the proposition of law that in the absence of incriminating material found as a result of search no addition can be made in the assessment made pursuant to notice u/s.153A of the Act. No purchases can be disallowed by alleging that purchases made are bogus. CIT(Appeals) also considered the statement given by the director of M/s. Bhanwarlal M.Jain Group and come to conclusion that the statement does not reveal that the purchases are bogus, it is only stated that the actual supplies are made by some other person on whose behalf the invoices are issued by this group. The statement only reinforces the contention of the respondent assessee that actual purchases are made. CIT(Appeals) also considered the prevailing business practices in the same line of business and come to conclusion that the actual suppliers are made by one party and the invoices are issued by another party, which does not mean the purchases are bogus. Thus, the order of the ld. CIT(A) is based on due appreciation of materials on record and the law governing the issue of the bogus purchases. Therefore we do not find any reason to interfere with the order of the ld. CIT(A) on the issue of bogus purchases. Thus, viewed from any angle the impugned assessment order cannot be sustained in the eyes of law. The order of the ld. CIT(Appeals) is based on the due appreciation of material on record and in consonance with the settled principle of law and therefore we do not find any reason to interfere with the order of the ld. CIT(A). Accordingly, the appeal filed by the Revenue is dismissed.
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